NHS agrees 7% price reduction for prescription drugs for next five yearsBMJ 2004; 329 doi: https://doi.org/10.1136/bmj.329.7475.1128-a (Published 11 November 2004) Cite this as: BMJ 2004;329:1128
- Susan Mayor
The NHS has agreed a 7% reduction in price for the purchase of branded prescription drugs by the NHS, after negotiations with the Association of the British Pharmaceutical Industry.
The deal has been agreed as part of the pharmaceutical price regulation scheme, a voluntary agreement between the association and the four health departments in England, Scotland, Wales, and Northern Ireland that limits the price of branded, prescription only drugs prescribed on the NHS.
It allows drug companies complete freedom to set the price of new drugs launched in the UK market but sets a target rate of return on capital, and allowances for expenditure on research and …